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By: Ina Steiner

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eBay is allowing Yahoo paid-search ads to appear on eBay search results in the U.S., according to today's announcement (link).

Let's say I list an iPod on eBay for $19.95 and make it a featured listing. I'd be paying eBay 60 cents in listing fees and $19.95 for the Featured Plus upgrade so my listing will stand out on the search results pages. Imagine how I feel if right next to my featured listing is an ad for an iPod from a Yahoo Search Marketing advertiser that draws people away from the eBay.com website.

Remember, if the shopper chooses to purchase the iPod from the Yahoo advertiser, eBay gets nothing more. If they buy my iPod, eBay gets a Final Value Fee from me.

Yahoo understands perfectly the value of auction listings as a platform for serving up its paid-search product. One year ago, it eliminated fees on its own auction platform and serves up its paid-search advertisements on Yahoo Auction search results. It must be jumping up and down at the thought of putting its ads on eBay.com. This is an incredibly lucrative deal for Yahoo.

eBay will likely say this will be offset by increased traffic by having eBay ads appear on Yahoo. As an eBay seller, I'm not convinced. I've got a call into eBay to see what they have to say.

Will my sales increase because of increased traffic driven by Yahoo, or will my sales decrease because of competing Yahoo ads next to my items on eBay.com?

What do you think?

by: Ina

Thu May 25 10:00:53 2006

From Bill Cobb about the announcement:http://www2.ebay.com/aw/core/200605250457542.html

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Ina

Thu May 25 10:12:28 2006

Just got off the phone with Catherine England of eBay. She actually seemed fuzzy on details, but said they were going to do a lot of testing to make sure the ad agreements benefited the eBay community. As I was talking to her, we read Bill Cobb's announcement, and I realized that my iPod example above is incorrect.

If a buyer is perusing search results for iPods, they will see Yahoo ads for "complementary" items. So they would not see iPod ads, they might see iPod accessory ads. Bill Cobb uses this example:

"This will include testing some sponsored search ads for complementary products and services - for example, a buyer searching for a hair dryer might be presented with sponsored search ads for related items like shampoo or hair brushes."

He adds, "To be clear, we will not place ads on view item pages."

Catherine said the increased traffic and exposure eBay will get on Yahoo pages will benefit eBay sellers tremendously. So there, now what do you think?

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Jeff

Thu May 25 12:04:02 2006

I say- may the best seller win, where ever their web presence resides. Service is also a component to price when making that purchase. Good luck to all because this opens up a whole new flow of product information for potential customers.

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Bidofthis

Thu May 25 12:42:25 2006

Re:>>>Yahoo to Partner with eBay, Will Integrate PayPal Payment Service.<<<

Funny Illustration.:)

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Jeffrey McManus

Fri May 26 01:46:11 2006

I was gonna say, the illustration kinda made me feel dirty (not that there's anything wrong with that).

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Ina

Fri May 26 07:12:23 2006

Jeffrey, I hope Yahoo consulted you before making with this deal. :) Congrats on the birth of your son Revelin!!!

Expect eBay Sellers to Go Ballistic over Yahoo Pai

by: Ina

Mon May 29 13:35:48 2006

Jeff, you make an interesting point - will the shopper choose the best value? Also, should eBay decrease listing fees as a result of increased competition from these ads?

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